Steps to Follow When Your Loan Application Gets Rejected
It shouldn’t take more than 24 hours for your instant payday loans online application to get approved and your funds disbursed.
Truth is said, depending on your current loan request, there’s a 90-95% chance of you having your request approved… But what if it doesn’t?
That being said, we at InstantPaydayLA took it upon ourselves to study certain factors that might lead to your online lender rejecting your online payday loans for bad credit requests. Some of which includes:
- Credit scores and ratings
- Income verification
- Lack of a surety
- And other related issues
So, if you’re tired of always having your loan application rejected, then you’ll love this guide.
Let’s get started.
Follow the Following Steps When Your Loan Application Gets Rejected
Most at times, the first thing that’d come to your mind immediately you get your loan request rejected is, “maybe I don’t have enough income to show-for to secure this current loan amount…”; but this isn’t true for most cases.
The above listed, either combined or individually could contribute in not having your loan request approved; and they are broken down thus:
#1: Credit Scores and Ratings
Most traditional loan providers will require you to have at least a credit score of 550 to qualify for funding.
Your credit score simply describes your borrowing habit(s) and history to lenders whenever you request a loan offer. This includes how often you pay off your loan offers whenever they’re due.
Slow payments on your loan offers will reflect a bad credit rating for you with lenders, which in turn will make it really difficult to get a loan again on your next application; and this is where a bad credit loan comes in really handy.
Instant payday loan online lenders generally will accept your bad credit loan request, even with no collateral whatsoever.
#2: Income Verification
Since the federal government no longer requires payday lenders to verify customers’ ability to settle on their loan offers, many online lenders now instill some minimum income requirements to ensure that they are able to get back their funds when due.
Thus, no matter the type of loan (traditional or payday), unemployment can be a major factor as to why your loan requests are being rejected.
And it doesn’t just stop there… Even though you’re currently employed, but your current salary doesn’t meet your loan provider’s minimum income requirements, you’re most likely to have your loan request rejected.
Most often, some online lenders will actually offer you a lower amount in funding than you’re initially requested amount for your current monthly income.
#3: Lack of a Surety
Generally, loans issued are of two types: secured and unsecured.
While a secured loan will require you to provide a form of collateral as a backing for your loan offer, an unsecured loan is basically the inverse.
Now, some loan providers actually allow borrowers to get a surety bond that in turn acts as collateral for the loan offer; but basically, all these won’t be needed if you’re applying for an unsecured (payday loan).
Conclusion
As seen from the above-listed factors, one can say that payday loans are the best alternative for cash in the case of an unexpected (unplanned) expense.
Though some payday lenders may require that you provide the name and contact of a family member or friend as surety for your loan offer, still, this is in no way considered as collateral.
This is just a safety measure on the path of the loan provider, just in case you decide to default on your loan payment.
